Salary Transfer Loan (STL)

In the UAE, mortgage products are offered on either a Salary Transfer Loan (STL) or Non-Salary Transfer Loan (NSTL) basis. A Salary Transfer Loan is a mortgage where your monthly salary is credited to an account with the same bank providing the mortgage.  Banks offer reduced interest rates, lower processing fees or other preferential terms in return for maintaining the salary transfer. This requirement will be stated in the mortgage pre-approval or Final Offer Letter.

The mortgage process generally remains the same however you may be required to share a salary transfer letter from your employer for an STL mortgage. During the Final Offer Letter signing stage, the bank will advise when the salary transfer should begin. 

Under an STL mortgage, if you plan to change employers, you can usually continue using the same salary account by providing the account details to your new employer and submitting your updated employment documents to the bank. The bank may request a new salary certificate, employment contract or salary transfer letter.

If you lose your job or your salary stops being credited, your monthly mortgage instalments will remain payable. Depending on the mortgage terms, the bank may review the interest rate or any benefits linked to the salary transfer. Some banks may also temporarily restrict access to end-of-service benefits while outstanding liabilities or new employment details are being reviewed.

If you wish to transfer your salary to an account with another bank, you should inform your mortgage bank before redirecting it. If the mortgage was approved on STL terms, moving your salary elsewhere may result the mortgage being moved to Non-Salary Transfer terms. The exact conditions will depend on the Final Offer Letter, Key Facts Statement and mortgage agreement.